Ben Bernanke

Tyler Durden's picture

Is This A Self-Sustaining Recovery Or As Good As It Gets?





Opinions about the U.S. economy boil down to two views: 1) the recovery is now self-sustaining, meaning that the Federal Reserve can taper and end its unprecedented interventions without hurting growth, or 2) the current uptick in auto sales, new jobs, housing sales, etc. is as good as it gets, and the weak recovery unravels from here. The reality is that nothing has been done to address the structural rot at the heart of the U.S. economy. You keep shoving in the same inputs, and you guarantee the same output: another crash of credit bubbles and all the malinvestments enabled by monetary heroin.

 
Tyler Durden's picture

Aussie Dollar Tumbles As Stevens Says "Overvalued"; Claims "Not Jawboning"





It appears it's one of those nights. In a fit of confusion, Australia's Central Bank head Glenn Stevens declared "investors are under-estimating the chance of an AUD decline" only to follow that 'jawboning' up with an explanation that he is trying "to avoid shifting language or jawboning." But then he broke the cardinal rule of central-banking - he told the truth:

*STEVENS: PEOPLE SHOULDN'T ASSUME HOUSE PRICES ALWAYS RISE

But.. but.. but... Ben Bernanke said... The AUD plunged over 50 pips on the news (but like any good central bank non-jawbone is suffering from a short half-life).

 
Tyler Durden's picture

Why Listening To Economists Is Dangerous For Your Health





Fed economists say they don’t think inflation rates are rising. They think the most recent reading is a fluke. But why does anyone take them seriously? Prakash Loungani, an economist working for the IMF, undertook a study (published in 2001 in the International Journal of Forecasting); there were no surprises in it. “The record of failure to predict recessions is virtually unblemished,” he reported. That was in 2001. Surely, by 2014, the experts had managed to stain their pathetic record with some success? Nope. Loungani and a colleague, Hites Ahir, took another look. They examined 77 different national economies, of which 49 were in recession in 2009. In 2008, how many economic forecasters saw the recessions coming a year later? Go ahead, dear reader, take a guess. The answer is zero.

 
Tyler Durden's picture

$1 Million A Month - What Ex-NSA Chief Alexander Charges Wall Street For "Advice"





So what’s a Peeping Tom, anti-democratic, Constitution-trampling intelligence crony to do after leaving decades of “public service?” Move into the private sector and collect a fat paycheck from Wall Street, naturally. So what is Mr. Alexander charging for his expertise? He’s looking for $1 million per month. Yes, you read that right. That’s the rate that his firm, IronNet Cybersecurity Inc., pitched to Wall Street’s largest lobbying group the Securities Industry and Financial Markets Association (SIFMA)

 
Tyler Durden's picture

The $1.5 Trillion Short And Noisy Inflation Trades





On the day after Chairman Yellen’s press conference, investors aggressively bid up inflation trades across numerous asset classes. Gold and silver rallied sharply, TIPS implied inflation breakevens widened (despite a new slug of 30-year supply), Treasury yields rose, and the yield curve steepened. Based on investor positioning and market sentiment (CFTC’s Commitment of Traders data show record net short positions exceeding $1.5 trillion in notional rates exposure among speculators in the eurodollar futures markets), there’s decent potential for additional gains in these inflation expressions in the days and weeks ahead.

 
Tyler Durden's picture

Bull vs Bear vs Right vs Wrong: And Does It Really Matter





Currently there is a great debate within the financial media on the who’s right – who’s wrong, as both sides stare at a financial market that seems to go ever higher with every morning bell. In actuality, it’s both, and neither. Currently the macro economy is being expressed via circumstances resulting from a myopic view of participation. i.e., The financial markets. All of those fundamental based principles have been annexed to what one solitary person will do – then say. That person was Ben Bernanke. Now it’s been codified via the markets recent reactions to Janet Yellen. All of those fundamental based principles have been annexed to what one solitary person will do – then say. That person was Ben Bernanke. Now it’s been codified via the markets recent reactions to Janet Yellen.

 
Tyler Durden's picture

Futures Unchanged Ahead Of The Fed Announcement





it is suddenly not fun being a Fed president (or Chairmanwoman) these days: with yesterday's 2.1% CPI print, the YoY rate has now increased for four consecutive months and is above the Fed's target. Concurrently, the unemployment rate has also dipped well below the Fed’s previous 6.5% threshold guidance, in other words the Fed has now met both its mandates as set down previously. There have also been fairly unambiguous comments from the Fed’s Bullard suggesting that this is the closest the Fed has been to fulfilling its mandates in many years. Finally, adding to the "concerns" that the Fed may surprise everyone were BOE Carney’s comments last week that a hike “could happen sooner than the market currently expect." In short: continued QE here, without a taper acceleration, merely affirms that all the Fed is after is reflating the stock market, and such trivial considerations as employment and inflation are merely secondary to the Fed. Which, of course, we know - all is secondary to the wealth effect, i.e., making the rich, richer. But it is one thing for tinfoil hat sites to expose the truth, it is something else entirely when it is revealed to the entire world.

 
EconMatters's picture

The Inflation Era Has Arrived!





You can ignore and even downplay for a while, but eventually and as sure as the fundamental law of nature that everything has a cost....

 
Phoenix Capital Research's picture

What the Fed's Chart Illiteracy Means For the Markets and Economy





Inflation is once again soaring in the US. Oil is back above $100 per barrel. Stocks have more than tripled from their 2008 lows, and housing is now more expensive relative to incomes than it was in 2007 for some markets.

 
Phoenix Capital Research's picture

The Fed COMPLETELY Missed the Boat on Deflation/Inflation





Let’s be blunt here. The Fed has engaged in the single largest monetary experiment in history, betting the US economy and banking system on misguided theories that have little to no evidence of success.

 
Tyler Durden's picture

Putting Your Money Where Their Mouth Is: Who Are The Best Paid Economists





What is stunning, especially in light of recent revelations that the most clueless economist of them all, Ben Bernanke, now commands a fee of $250,000 per speech (and just happens to be "off the chart"), is just how much these constantly wrong weathermen are paid to spread their particular dose of voodoo. So, without further ado, prepare to be dumbfounded.

 
Tyler Durden's picture

Exorbitant Cost Of Pseudo-Educating America: The Next Two-Trillion Dollar Bubble





“Go and get educated, you weakly fools, learn to compete; it’s a tough world out there.” And with that push by the Knightly Elite, Americans by the millions have entered a path offering them skills or greater opportunity, instead of taking the alternate route to an almost guaranteed permanent welfare. In their obsequious tradition of creating self-serving opportunities and promoting waste, legislators have allowed the creation of a field of uncontrolled helter-skelter, unqualified schools (new or existing) offering shelter to mostly unemployed or unemployable men and women wearing student uniforms. Yet, as this throw-away part of society gets “educated” there are none-to-few jobs waiting for them. These “money advances,” appear as the only way to subsist. For now... we’ll just wait until this bubble bursts.

 
Tyler Durden's picture

Paul Volcker Slams The Fed: "The Kind Of Stuff That You’re Being Taught At Princeton Disturbs Me"





"The responsibility of any central bank is price stability. I was at the helm at that time. Price stability is two percent inflation, which we can’t closely control anyway. They ought to make sure that they are making policies that are convincing to the public and to the markets that they’re not going to tolerate inflation... The responsibility of the government is to have a stable currency. This kind of stuff that you’re being taught at Princeton disturbs me. Your teachers must be telling you that if you’ve got expected inflation, then everybody adjusts and then it’s OK. Is that what they’re telling you? Where did the question come from?"

 
Tyler Durden's picture

More Facts About The Tea-Party's "Goliath-Slayer" David Brat





  • ECONOMICS AND BUSINESS PROFESSOR WITH DIVINITY DEGREE
  • FAN OF AYN RAND
  • ARGUED RELIGION PLAYS ROLE IN ECONOMIC GROWTH RATES
  • OPPONENT OF IMMIGRATION REFORM
  • FACE-OFF AGAINST FELLOW FACULTY MEMBER
  • WAS CRITICIZED BY CANTOR FOR BEING A LIBERAL
 
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